Deforestation Free Palm Oil: Is that possible? EPOC 2016, Warsaw, 5th of October 2016 By: Annisa Rahmawati

Deforestation Free Palm Oil: Is that possible? EPOC 2016, Warsaw, 5th of October 2016 By: Annisa Rahmawati

Content: Background - Deforestation Impacts - Boycotting is not solution - The challenges Palm Oil Innovation Group High Carbon Stock Approach Conclusion

Deforestation Impacts Indonesia and Malaysia: 80% of Global Palm Oil production, mostly for export, including to EU (47% with India and China) Since 1990: Forests lost Indonesia = 31 mio=size of Germany Threaten the lives of millions who depend on the forests, as well as wildlife and climate Forest Fire and Haze: 2 decades of dirty plantation practices more costs than benefit in SEA to satisfy global PO market

Boycotting Palm Oil is not Solution Not easy to exclude PO from our consumption 42% PO production (ID) is from smallholders, there is opportunity for improvement for productivity and better practices-fair partnership Greenpeace works at Dosan village Greenpeace with SPKS on Smallholders SOP No Deforestation Commitment is Setting PO industry standards-producers and Consumers Companies

The Challenges of NDPE commitment Need for industry wide action to stop deforestation and protect peat landscapes: Brazil Soya Moratorium Action on third party suppliers Responsible Sourcing Industrial Reform Transparency NGOs criticism on RSPO

Palm Oil Innovation Group POIG aims to support the RSPO through building on RSPO standards, demonstrating innovation to implement RSPO with additional critical issues. POIG focuses on three thematic areas of environmental responsibility, partnerships with communities, and corporate and product integrity POIG focuses on creating innovations in the palm oil industry and the promotion of these innovations.

POIG Members and Acknowledgment Acknowledgment: Montpellier Declaration

POIG Verification 3 rd party verification against environmental and social standards of POIG Charter Updated POIG verification indicators in March 2016: Social issues stronger Environment: Progress on HCS Convergence: this year one HCS methodology Good Agricultural Practices: water equity, non GMO, reducing chemical pesticide/fertilizer Responsible Palm Oil Supply Chain: The Guideline Growers Retailers and manufacturers charter Traders and processors charter (coming soon)

POIG Innovation 3 rd party verification against NDPE commitment, specify: No Deforestation: HCS-HCV-Peat Protection: HCS Approach Peat land restoration No exploitation: Independent expert advices on FPIC/ Conflict Resolution Process Setting aside of garden/farmland to strengthen communities food securities Indicators related to workers rights Guidance on Smallholder support

High Carbon Stock-HCS Approach No D Land Use Planning Tool Identify Forests areas - win win solution Engagement Platform: Multi-stakeholders, including collaboration with HCV Resources Network HCS Steering Group governance and standardization: Progress on Convergence with HCS Study

HCS Forest Stratification POTENTIAL HCS AREAS MAY BE DEVELOPED High-Density Forest (HDF/HK3) Remnant forest or advanced secondary forest close to primary condition Medium Density Forest (MDF/HK2) Remnant forest but more disturbed than HK3 Low Density Forest (LDF/HK1) Appears to be remnant forest but highly disturbed and recovering [may contain plantation/ mixed garden] Young Regenerating Forest (YRF) Mostly young regrowth forest, but with occasional patches of older forest within the stratum Scrub (S)) Recently cleared areas, some woody regrowth and grass-like ground cover Cleared/Open Land (OL) Very recently cleared land with mostly grass or crops, few woody plants 11

HCS Approach Steering Group 12

Responsible Supply Chain What does it means? Proactively monitoring-system in place Transparent Traceable Timeline Exclusion of non compliance

THANK YOU.. YES!! DEFORESTATION FREE PALM OIL IS POSSIBLE